Budgeting and Responsibility Accoun

Budgeting and Responsibility Accounting
To attain the goals described in the master budget, top managers must coordinate the efforts of all of the firm’s employees----- from senior executives through middle levels of management to every supervised worker. To coordinate the company’s efforts, top managers assign a certain amount of responsibility to lower-level managers and then hold them accountable for how they perform. Consequently, how each company structures its organization significantly shapes how it coordinates its actions.
Organization Structure and Responsibility
Organization structure is an arrangement of lines of responsibility within an organization. A company such as Exxon Mobil is organized by business function, refining, marketing, and so on--- with the president of each business function having decision-marking authority over his or her function. Other companies, such as Procter & Gamble, the household-products giant, are organized primarily by product line or brand. The managers of the individual divisions (toothpaste, soap, and so on) have decision-making authority concerning all the business functions (manufacturing, marketing, and so on) within that division.
Each manager, regardless of level, is in charge of level, is in charge of a responsibility center. A responsibility center is a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities. Higher-level managers supervise centers with broader responsibility and larger number of subordinates. Responsibility accounting is a system that measures the plans, budgets, actions, and actual results of each responsibility center. There are four types of responsibility centers:
1. Cost center---the manager is accountable for costs only.
2. Revenue center---the manager is accountable for revenues only.
3. Profit center---the manager is accountable for revenues and costs.
4. Investment center---the manager is accountable for investments, revenues, and costs.
The maintenance department of a Marriott hotel is a cost center because the maintenance manager is responsible only for costs, and the budget is based only on costs. The sales department is a revenue center because the sales manager is responsible primarily for revenues, and the department’s budget is primarily based on revenues. The hotel manager is in charge of a profit center because the manager is accountable for both revenues and costs, and the hotel’s budget is based on revenues and costs. The regional manager responsible for determining the amount to be invested in new hotel projects and for revenues and costs generated from these investments is in charge of an investment center. So this center’s budget is based on revenues, costs, and the investment based.
A responsibility center can be structured to promote better alignment of individual and company goals, For example, unit recently, OPD, an office products distributor, operated its sales department solely as a revenue center. Each salesperson received a commission of % of the revenues per order, regardless of its size, the cost of processing it, or the cost of delivering the office products. Upon analyzing customer profitability, OPD found that many costumers were unprofitable. The main reason was the high ordering and delivery costs of small orders. OPD’s managers decided to make the sales department a profit center, accountable for revenues and costs, and to change the incentive system for salespeople to 15% of the monthly profits of their customers. The costs for each customer included the ordering and delivery costs. The effect of this change was immediate. The sales department began charging customers for ordering and delivery, and salespeople at OPD actively encouraged customers to consolidate their purchases into fewer orders. As a result, each order began producing larger revenues. The profitability of customers increased because of a 40% reduction in ordering and delivery costs in 1 year.
Feedback
Budgets coupled with responsibility accounting provide feedback to top managers about the performance relative to the budget of different responsibility center managers.
Differences between actual results and budget amounts---called variances---can help managers implement strategies and evaluate them in three ways:
1. Early warning, Variances alert managers early to events not easily or immediate evident. For example, after observing a small in sales during a period, manager may want to investigate if this is an even steeper decline to come later in the year.
2. Performance evaluation. Variances prompt managers to probe how well the company has implemented its strategies. Were materials and labor used efficiently? Was R&D spending increased as planned as planned? Did product warranty costs decrease as planned?
3. Evaluating strategy. Variances sometimes signal to managers that their strategies are ineffective. For examples, a company seeking to compete by reducing costs and improving quality may find that it is achieving these goals but that it is having little effect on sales and profits. Top management may then want to reevaluate the strategy.
Responsibility and Controllability
Controllability is the degree of influence a specific manager has over costs, revenues, or related items for which he or she is responsible. A controllable cost is any cost primarily subject to the influence of a given responsibility center manager for given period. A responsibility accounting system could either exclude all uncontrollable costs form a manager’s performance report or segregate such costs form the controllable costs. For example, direct manufacturing labor, power, and machine maintenances costs and might exclude costs such as rent and taxes paid on the plant.
In practice, controllability is difficult to pinpoint for two main reasons:
1. Few costs are clearly under the sole influence of one manager. For example, purchasing managers are able to affect the prices their firms pay for direct materials, but these prices also depend on market conditions beyond the manager’ control. Similarly, the decisions production managers make can affect the qualities of direct materials used but also depend on the quality of materials purchased. Moreover, managers often work in teams. Thing about how difficult it is to evaluate individual responsibility in a team situation.
2. With a long enough time span, all costs will come under somebody’s control. However, most performance reports focus on periods of a year or less. A current manager may benefit from a predecessor’s accomplishments or may have to work with undesirable contracts with suppliers or labor unions negotiated by their predecessors. How can we separate what the current manager actually controls from the results of decisions other managers made? Exactly what is the current manager accountable for? The answers may not be clear-cut.
Executives differ in how they embrace the controllability notion when evaluating people reporting to them. Some CEOs regard the budget as a firm commitment subordinate must meet and that “ numbers always tell the story.” Failing to meet the budget is viewed unfavorably. An executive once noted, “You can miss your plan once, but you wouldn’t want to miss it twice.” Such an approach forces manager to learn to perform under adverse circumstances and to deliver consistent results year after year. It removes the need to discuss which costs are controllable and which are no controllable because it does not matter whether the performance was due to controllable factors. The disadvantage of this approach is that it subjects a manager’s compensation to greater risk. It also de-motivates managers when uncontrollable factors adversely affect their performance evaluations even though they have performed well in terms of factors they can control.
Other CEOs believe that focusing on marking the numbers in a budget puts excessive pressure on managers. These CEOs adjust for no controllable factors and evaluate managers only on what they can control, such as their performance relative to competitors. Using relative performance measures takes out the effects of favorable or unfavorable business conditions that are outside the manager’s control and affect all competing managers in the same way. The challenge is in finding the correct benchmarks. Relative performance measures, however, reduce the pressure on managers to perform when circumstances are difficult.
Managers should avoid thinking about controllability only in the context of performance evaluation. Responsibility accounting is more far-reaching. It focuses on gaining information and knowledge, not only on control. Responsibility accounting helps managers to first focus on whom they should ask to obtain information and not on whom they should blame. Comparing the shortfall of actual revenues to budgeted revenues is certainly relevant when evaluating the performance of the sales managers of Ritz-Carlton hotels. But the more fundamental purpose of responsibility accounting is to gather information from the sales managers to enable future improvement. Holding them accountable for sales motivates them to learn about marker conditions and dynamics outside of their personal control but relevant when deciding the actions the hotels might take to Increase their future sales. Similarly, Purchasing managers may be held accountable for total purchase costs, not because of their ability to control market prices, but because of their ability to predict and respond to uncontrollable prices and understand their causes.
Performance reports for responsibility centers are sometimes designed to change managers’ behavior in the direction top managers desire even if the reports decrease controllability. Consider a manufacturing department. It the department is designated as a cost center, the manufacturing manager may emphasize efficiency and deemphasize the pleas of sales perso

ผลลัพธ์ (ไทย) 1:

จัดทำงบประมาณและการบัญชีความรับผิดชอบเพื่อบรรลุเป้าหมายในงบประมาณหลัก ผู้บริหารสูงสุดต้องประสานความพยายามของทั้งหมดของบริษัทพนักงาน---จากผู้บริหารระดับสูงผ่านระดับกลางจัดการให้พนักงานทุกคนมี การประสานความร่วมมือของบริษัท ผู้บริหารสูงสุดกำหนดจำนวนความรับผิดชอบระดับผู้จัดการแล้ว เก็บพวกเขารับผิดชอบจะทำอย่างไร ดังนั้น ว่าแต่ละบริษัทโครงสร้างองค์กรเป็นอย่างมากรูปร่างว่าจะประสานการดำเนินการของการโครงสร้างองค์กรและความรับผิดชอบโครงสร้างองค์กรเป็นการจัดรายการความรับผิดชอบภายในองค์กร บริษัทเช่น Exxon มือถือจัด โดยทำธุรกิจ โรงกลั่น การตลาด และอื่น ๆ---กับประธานของฟังก์ชันแต่ละธุรกิจที่มีอำนาจตัดสินใจเลือกผ่านของเขา หรือเธอ บริษัทอื่น ๆ เช่นพรอค ยักษ์ ผลิตภัณฑ์ในครัวเรือนมีจัดหลักตามสายผลิตภัณฑ์หรือแบรนด์ ผู้จัดการของแต่ละส่วน (ยาสีฟัน สบู่ และอื่น ๆ) มีฟังก์ชันทั้งหมดธุรกิจ (ผลิต การตลาด และอื่น ๆ) ในส่วนที่เกี่ยวข้องกับผู้มีอำนาจตัดสินใจEach manager, regardless of level, is in charge of level, is in charge of a responsibility center. A responsibility center is a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities. Higher-level managers supervise centers with broader responsibility and larger number of subordinates. Responsibility accounting is a system that measures the plans, budgets, actions, and actual results of each responsibility center. There are four types of responsibility centers:1. Cost center---the manager is accountable for costs only.2. Revenue center---the manager is accountable for revenues only.3. Profit center---the manager is accountable for revenues and costs.4. Investment center---the manager is accountable for investments, revenues, and costs.The maintenance department of a Marriott hotel is a cost center because the maintenance manager is responsible only for costs, and the budget is based only on costs. The sales department is a revenue center because the sales manager is responsible primarily for revenues, and the department’s budget is primarily based on revenues. The hotel manager is in charge of a profit center because the manager is accountable for both revenues and costs, and the hotel’s budget is based on revenues and costs. The regional manager responsible for determining the amount to be invested in new hotel projects and for revenues and costs generated from these investments is in charge of an investment center. So this center’s budget is based on revenues, costs, and the investment based.A responsibility center can be structured to promote better alignment of individual and company goals, For example, unit recently, OPD, an office products distributor, operated its sales department solely as a revenue center. Each salesperson received a commission of % of the revenues per order, regardless of its size, the cost of processing it, or the cost of delivering the office products. Upon analyzing customer profitability, OPD found that many costumers were unprofitable. The main reason was the high ordering and delivery costs of small orders. OPD’s managers decided to make the sales department a profit center, accountable for revenues and costs, and to change the incentive system for salespeople to 15% of the monthly profits of their customers. The costs for each customer included the ordering and delivery costs. The effect of this change was immediate. The sales department began charging customers for ordering and delivery, and salespeople at OPD actively encouraged customers to consolidate their purchases into fewer orders. As a result, each order began producing larger revenues. The profitability of customers increased because of a 40% reduction in ordering and delivery costs in 1 year.FeedbackBudgets coupled with responsibility accounting provide feedback to top managers about the performance relative to the budget of different responsibility center managers. Differences between actual results and budget amounts---called variances---can help managers implement strategies and evaluate them in three ways:1. Early warning, Variances alert managers early to events not easily or immediate evident. For example, after observing a small in sales during a period, manager may want to investigate if this is an even steeper decline to come later in the year.2. Performance evaluation. Variances prompt managers to probe how well the company has implemented its strategies. Were materials and labor used efficiently? Was R&D spending increased as planned as planned? Did product warranty costs decrease as planned?3. Evaluating strategy. Variances sometimes signal to managers that their strategies are ineffective. For examples, a company seeking to compete by reducing costs and improving quality may find that it is achieving these goals but that it is having little effect on sales and profits. Top management may then want to reevaluate the strategy.Responsibility and ControllabilityControllability is the degree of influence a specific manager has over costs, revenues, or related items for which he or she is responsible. A controllable cost is any cost primarily subject to the influence of a given responsibility center manager for given period. A responsibility accounting system could either exclude all uncontrollable costs form a manager’s performance report or segregate such costs form the controllable costs. For example, direct manufacturing labor, power, and machine maintenances costs and might exclude costs such as rent and taxes paid on the plant. In practice, controllability is difficult to pinpoint for two main reasons:1. Few costs are clearly under the sole influence of one manager. For example, purchasing managers are able to affect the prices their firms pay for direct materials, but these prices also depend on market conditions beyond the manager’ control. Similarly, the decisions production managers make can affect the qualities of direct materials used but also depend on the quality of materials purchased. Moreover, managers often work in teams. Thing about how difficult it is to evaluate individual responsibility in a team situation.2. With a long enough time span, all costs will come under somebody’s control. However, most performance reports focus on periods of a year or less. A current manager may benefit from a predecessor’s accomplishments or may have to work with undesirable contracts with suppliers or labor unions negotiated by their predecessors. How can we separate what the current manager actually controls from the results of decisions other managers made? Exactly what is the current manager accountable for? The answers may not be clear-cut.Executives differ in how they embrace the controllability notion when evaluating people reporting to them. Some CEOs regard the budget as a firm commitment subordinate must meet and that “ numbers always tell the story.” Failing to meet the budget is viewed unfavorably. An executive once noted, “You can miss your plan once, but you wouldn’t want to miss it twice.” Such an approach forces manager to learn to perform under adverse circumstances and to deliver consistent results year after year. It removes the need to discuss which costs are controllable and which are no controllable because it does not matter whether the performance was due to controllable factors. The disadvantage of this approach is that it subjects a manager’s compensation to greater risk. It also de-motivates managers when uncontrollable factors adversely affect their performance evaluations even though they have performed well in terms of factors they can control. Other CEOs believe that focusing on marking the numbers in a budget puts excessive pressure on managers. These CEOs adjust for no controllable factors and evaluate managers only on what they can control, such as their performance relative to competitors. Using relative performance measures takes out the effects of favorable or unfavorable business conditions that are outside the manager’s control and affect all competing managers in the same way. The challenge is in finding the correct benchmarks. Relative performance measures, however, reduce the pressure on managers to perform when circumstances are difficult.
Managers should avoid thinking about controllability only in the context of performance evaluation. Responsibility accounting is more far-reaching. It focuses on gaining information and knowledge, not only on control. Responsibility accounting helps managers to first focus on whom they should ask to obtain information and not on whom they should blame. Comparing the shortfall of actual revenues to budgeted revenues is certainly relevant when evaluating the performance of the sales managers of Ritz-Carlton hotels. But the more fundamental purpose of responsibility accounting is to gather information from the sales managers to enable future improvement. Holding them accountable for sales motivates them to learn about marker conditions and dynamics outside of their personal control but relevant when deciding the actions the hotels might take to Increase their future sales. Similarly, Purchasing managers may be held accountable for total purchase costs, not because of their ability to control market prices, but because of their ability to predict and respond to uncontrollable prices and understand their causes.
Performance reports for responsibility centers are sometimes designed to change managers’ behavior in the direction top managers desire even if the reports decrease controllability. Consider a manufacturing department. It the department is designated as a cost center, the manufacturing manager may emphasize efficiency and deemphasize the pleas of sales perso

ผลลัพธ์ (ไทย) 3:

งบประมาณและการบัญชี
รับผิดชอบบรรลุเป้าหมาย ตามที่อธิบายไว้ในงบประมาณหลัก ผู้บริหารสูงสุดต้องประสานงานความพยายามของพนักงานทั้งหมดของบริษัท ----- จากผู้บริหารระดับสูงผ่านกลางระดับของการจัดการทุกดูแลคนงาน การประสานงานความพยายามของบริษัทผู้จัดการด้านบนกําหนดจํานวนหนึ่งของความรับผิดชอบเพื่อลดระดับผู้จัดการแล้วถือพวกเขารับผิดชอบวิธีการที่พวกเขาดำเนินการ ดังนั้นวิธีการที่แต่ละ บริษัท มีโครงสร้างองค์กรของรูปร่างมันพิกัดการกระทำของมัน โครงสร้างองค์กรและโครงสร้างองค์กรความรับผิดชอบ

เป็นจัดเรียงของเส้นของความรับผิดชอบภายในองค์กรบริษัท เช่นเอ็กซอนโมบิล จัดโดยฟังก์ชั่นธุรกิจ , ธุรกิจการตลาด , และอื่น ๆ . . . กับประธานของธุรกิจแต่ละฟังก์ชันมีอำนาจในการตัดสินใจการทำงานของเขา หรือเธอ บริษัท อื่น ๆ , เช่น พรอคเตอร์ &เล่นการพนัน , ผลิตภัณฑ์ในครัวเรือนยักษ์จัดเป็นหลัก โดยสายผลิตภัณฑ์หรือแบรนด์ ผู้จัดการของแผนกบุคคล ( สบู่ , ยาสีฟัน ,และอื่น ๆ ) มีอำนาจในการตัดสินใจการทำงานทุกธุรกิจ การผลิต การตลาด และอื่น ๆ ) ในแต่ละดิวิชั่น
ผู้จัดการ ไม่ว่าระดับ เป็นผู้รับผิดชอบระดับ อยู่ในความดูแลของศูนย์ความรับผิดชอบ ศูนย์ความรับผิดชอบเป็นส่วนใหญ่ หรือหน่วยย่อยขององค์กรซึ่งเป็นผู้จัดการรับผิดชอบที่กำหนดกิจกรรมสูงกว่าระดับผู้จัดการดูแลศูนย์กับความรับผิดชอบที่กว้างขึ้นและตัวเลขขนาดใหญ่ของผู้ใต้บังคับบัญชา การบัญชีตามความรับผิดชอบ คือ ระบบที่ มาตรการ แผนงบประมาณ การกระทำและผลลัพธ์ที่แท้จริงของแต่ละความรับผิดชอบของศูนย์ มี 4 ประเภทของศูนย์ความรับผิดชอบ :
1 ศูนย์ต้นทุน --- ผู้จัดการมีความรับผิดชอบสำหรับค่าใช้จ่ายเพียง .
2ศูนย์รายได้ --- ผู้จัดการรับผิดชอบรายได้เท่านั้น .
3 ศูนย์กำไร --- ผู้จัดการมีความรับผิดชอบสำหรับรายได้และค่าใช้จ่าย .
4 ศูนย์การลงทุน --- ผู้จัดการมีความรับผิดชอบสำหรับการลงทุน รายได้ และค่าใช้จ่าย
แผนกซ่อมบำรุงของโรงแรม คือ ต้นทุน เพราะผู้จัดการการบำรุงรักษาดูแลรับผิดชอบค่าใช้จ่าย และงบประมาณ โดยเฉพาะค่าใช้จ่าย